Ethanol inventory levels fell to the lowest levels of 2015 at the end of last week, according to the latest EIA data with growing demand for blended product and falling production pulling total stocks 25.2 million gallons lower than the previous week.
Energy futures also moved aggressively higher as traders focused on bullish EIA data that would suggest the potential of additional commercial and noncommercial support could continue to develop over the near future.
November ethanol futures gained 0.6 cent per gallon, to close at $1.586 per gallon, although additional support was seen earlier in the trading session; this suggested that increased momentum may continue to develop through the rest of the week if the widespread support is maintained in the RBOB gasoline markets.
Gasoline stocks have fallen each of the last three weeks, creating the expectation that further moves within this trend may continue to follow through the rest of the fall and winter months.
Rick Kment can be reached at firstname.lastname@example.org
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